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When A(+) is zero, the economy comes to a steady state. 0 (7) = (d+n) / +0 Given that y = Akt, d=0.05=5%, n=5%,

 

When A(+) is zero, the economy comes to a steady state. 0 (7) = (d+n) / +0 Given that y = Akt, d=0.05=5%, n=5%, 0=20%, A= 2 AKE 20% (AR) = (5% +5%) * 0.22. K = 0.1K

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